Doors? Windows? Any existing plumbing, any DWV, in any of the walls, or stacked below? Any N/S/E/W orientation? Mongo

If the picture is being taken from the entry I suggest moving the bed to the wall that you have the mirror propped up against and the dresser in between the Windows. Add two unexpected nightstands that are larger scale (at minimum 36” wide. Hope it helps as it’s hard to visualize the layout

May Lee, I would put less weight on the opinions of the people here, and more into research on what off campus college rentals are like in your area. How large are the units, how large are the bedrooms, what are the rents per square foot being charged? Are rentals more commonly by the bedroom or for the entire unit? What is expected in kitchens and common areas? What sort of students choose to live in your neighborhoods? I would aim at attracting graduate students, as they are more likely to be focused on their studies, be quieter, cause less disturbances, and have a greater level of maturity, especially if the schools near you have programs in areas such as medical, law, or architecture. From my experience in being a college student at an urban campus within the last 10 years: 1. Almost all graduate students in most of the US choose to live off campus, unless they are international. Many undergraduate students if allowed would rather live off campus too, because on campus living often either means sharing a bedroom and a bathroom and very little privacy, or you or your parents have to spring for the overpriced on-campus apartment style units. Living off campus is almost always cheaper. 2. As a college student I would never rent a unit without appliances. Unless it's expected that I have my own mini-fridge, and then there has to be a place to put it. Honestly as an adult I would never rent a unit without appliances, but maybe that is a regional thing. In fact, don't allow a tenant to have a hot plate, or space heaters, or anything else that could be an electrical hazard. 3. Most college students that I knew, unless they were really tall had a twin bed or full size bed. Queen beds or larger are a pain to move around, which college students frequently do. I've also had many roughly 10x10 bedrooms and they have worked just fine. Sure, the bed either has to be in the corner or closer to the wall than usual, but only one person will be sleeping in there (another note, your lease should have limits on the number of nights that your tenants can have visitors). 4. That said, the bedrooms should absolutely be designed so that each can comfortably fit a desk in addition to a bed. If your closets are setup well enough, these rooms don't need to fit anything else large. A student might have a small bookshelf or dresser, but they likely won't come with too many clothes.Or if they do, they will need to find themselves a larger more expensive apartment (back to what I said above about knowing your local market). 5. If I am a student and I am on a budget, I will absolutely compromise for a smaller unit if that means that I can get it for less. I have lived in my share of studios and tiny bedrooms. If your space is actually a little smaller than the typical in your neighborhood, and you charge a little less for it, that may work to your advantage. 6. Your common area doesn't have to be huge. If it fits a table for 2 a sofa and a TV, you are all set. My experience with common areas and students is that they actually don't get used a ton. And making them larger just invites large gatherings, which may be disruptive to you upstairs. 7. Is the washer and dryer available to the renters to use as well. Having done it once, I would never again rent a unit without laundry in the building. No one wants to cart their clothes a few blocks to the local laundromat in the rain because that was the only day available to get it done. 8. A dishwasher is really nice to have, but I have rented many apartments both during and after college without them. This is another case where I would see what rentals in the neighborhood have. A couple thoughts on your latest plan: 1. The closet in bedroom 2 being 3' deep is just wasting space. I would make it a more standard 25-26" deep and give that space back to one of the bedrooms. 2. I would mirror the bathroom/closet design of bedroom 1 so that the closet is away from the door and can have a full width bifold door. That will make it more useful. 3. Rethink the shelf in bedroom #2. This should either be a small closet or cabinet facing out into the hall, or delete the stub wall next to it and make this a full height wider cabinet next to the vanity. 4. I second that the furnace as located in the garage is just asking to be hit and banged into, since it hangs out into the garage door. If you have a small car, are likely to always have a small car, and the average buyer in your city also has a small car I would make a dedicated utility closet at the end of one of the stalls, leaving the other side longer for larger vehicles. 5. Most importantly, I think the common area needs another revision. The kitchen is wasting space in the corner, and there isn't a great way to layout furniture in the rest of the space. Maybe there is a way to get the kitchen back on the wall by the stairs, except the refrigerator? I would do a 24" electric stove and 24" refrigerator/freezer combo with a 24"-30" lower cabinet for storage and workspace. If you don't have a dishwasher I would try to fit in a small double basin sink. Upper cabinets should be generous and extend to the ceiling if possible. Try to then get two opposite walls across from each other that are clear to place a sofa and TV.

@sanmav68 : Thanks for info. What I meant was that the number of squares on the graph paper doesn't match your written measurements in those rooms, assuming you are using one square per foot. Installing a new HVAC system can be worth the money for comfort and even temperature control around the house. A lot depends on how much insulation the old house has. Get two or three quotes, prices can vary a lot depending on how and where they want to install the equipment in an older house that doesn't have it now. If the inherited house hasn't been maintained consistently, your $20K could easily go toward new appliances, electrical upgrades, new windows, furnace tune-up, gutter cleaning, termite treatment, and new flooring. You may want to pay for a professional inspection just as if you were buying the house so you'll be able to anticipate repair and replacement costs. There are also checklists online if you want to do a runthrough on your own. Some real estate agents offer a list of service people on their websites.